With Respect to the Performance Measures Return on Invested Capital

question 20

Multiple Choice

With respect to the performance measures return on invested capital (ROIC) ,return on equity (ROE) ,and return on assets (ROA) ,which of the following is most accurate concerning the relative superiority of the three as analytical tools for understanding a company's performance?

• A)ROE is better than ROA,which is better than ROIC.
• B)ROA is better than ROIC,which is better than ROE.
• C)ROIC is better than ROA,which is better than ROE.
• D)ROE is better than ROIC,which is better than ROA.

---

Definitions:

Basic Needs

Fundamental requirements for human survival and well-being, such as food, water, shelter, and safety.

Self-Actualization

The achievement or satisfying of one’s abilities and possibilities, viewed as a motivation or necessity inherent in all individuals.

Empowering Leadership

A leadership style focused on granting team members autonomy in their tasks, encouraging decision-making and innovation.

Employees

Individuals hired by a company to perform specific duties and tasks in exchange for compensation.